Sales Tax & the Apple Store

ScottW

ScottW

Founder
Staff member
Okay! Now... I realize that the government needs money to run... BUT, how does Apple sell ANYTHING online? I mean... for example, you can spend $180 on Sales Tax alone for a Powerbook. Why do people pay that when you can order from CDW or other supplier and not pay a dime in sales tax?

I was recently presented with discount option allowing me to purchase Apple Store (online only) products at 6% off for iBooks, iPods, iMacs, and 8% off Powerbooks and PowerMacs, and up to 11% off of XServes. Well, I was soooooo excited. But then to find out that the "estimated" price on taxes for my "order" was about the same price I was saving off the equipment.

Not that I can afford anything ANYHOW... but... this really made me disappointed. My only obvious option is to go to CDW or other like-minded supplier and order from them, and many times they toss in free ram and other equipment, something Apple doesn't do.

It makes NO SENSE to me.

I realize Apple MUST charge tax in states it has stores... but I live in a state without an Apple store, so why do I have to pay sales tax? Granted, there is a store 5 miles or less from my house, but it's in another state.
 
i wasn't paying too much attention in my economics class, but i remember my teacher saying something like "brick and mortar stores have to pay the taxes of the state they are in and internet companies who don't have a physical presence do not"
 
Well, yes that is correct. Apple claims to have a presence in all 50 states and hence the issue of tax in all 50 states. Makes sense... but my question remains, why buy from Apple directly?

I figured it up, my cost for a Powerbook 15", 1.3GHZ Combo Drive is $1970 from the Apple Store w/ tax... and I can buy one from MacZone for $1994 and I an extra printer and 512MB RAM upgrade. Is that worth $14? I think so.

Don't get it! The only thing it's worth any real value is XServes with a 11% discount, meaning, after taxes a 4% discount. But, I won't be buying any X-Serves anytime soon. :)
 
I can only speak for the UK. In the UK, the Apple store seems to be the only people who do education discounts. That's reason enough to buy from them as I still qualify for them.
 
In the UK most Apple resellers will do the educational prices. Now if we could order direct from the US that would be quite a saving at the moment.
 
We can order from the US (unless Apple won't let us) but we would have to pay at least VAT on the item, and possibly a courier handling charge. Then we have the question of warranty.
 
From what I have been led to believe they won't let you, otherwise why pay UK prices when with the exchange rates even with VAT and shipping it is cheaper to buy direct from the US.
 
As long as the retailer ships internationally, then there's no problem. OWC do, as I bought an upgrade from them, saving around 45% even after paying VAT.
 
Technically, you are responsible for that sales tax (at least in New York), even if the seller does not collect it.
On your state income tax return, there is a portion for you to declare items purchased out of state. Sure, its an honesty thing, but if you are audited you will be held responsible.
Yet another reason to pay cash. The IRS can't prove when and where you purchased anything.
 
Not very relavant to this discussion (maybe), I've made some recent purchases from the online Apple Store and the actual sales tax is different from the estimated sales tax that Apple shows on their receipts. On top of this, Apple may charge an "authorization hold" against your credit card, which is like 10% higher than the actual purchase price. Apple charges your card when the item ships, too, so that means if you order a G5 plus an Apple Cinema Display and the display ships early, you will see two transactions on your credit card bill.

Pretty annoying. We all would prefer to not pay sales tax and stuff, but if we are charged that, I'd like it to be the actual sales tax (can't be that hard to implement) and I'd also like the exact amount on the receipt to be the exact amount on the credit card bill.
 
Usually huge developers like apple will jack up their prices and have high tax or else no one would buy from the stores who sell their products. You can't compete with people who are making you tons of money. All companies do this, not just computer companies. You can check out pretty much every software developer's in-site store and you will notice their prices are all higher than other stores, sometimes several hundred bucks more.

The Apple store is no different, but it can be convenient if you have one near you because hardly any stores sell Mac stuff, and if they do, they have a limited selection. You pay more becasue it's all in one place, and also because it's Apple. You don't get the best designed stuff cheap.

<edit> And gong back to your question as to why buy from Apple directly? Well if you have an apple care plan you're usually fine, but it always helps when you have a problem and say "I BOUGHT IT DIRECTLY FROM YOU GUYS." Believe it or not, I've actually noticed a difference. Also Apple sells to schools and large corporations who get discounts when they buy in volume. The average person who buy's their first Mac and is basically computer illiterate will probably go to apple and not comparison shop, plus apple's site looks legit compared to some of the other ones that offer huge deals, as a designer I can tell you for a fact that makes a difference in buyer's minds.
 
Remember many countries are lumped with sales tax on _everything_ we buy. Just be happy that even with your extra 8%, 11% or whatever, US customers still pay less for their new Mac than most of the rest of the world.
 
monktus said:
Just be happy that even with your extra 8%, 11% or whatever, US customers still pay less for their new Mac than most of the rest of the world.
Click to expand...
That's true, that's true... (spoken like Kip from Napoleon Dynamite). ;)
 
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